(CN) – A suburban Chicago bank sued a former senior vice president, claiming Alan Silber cost Village Bank & Trust tens of millions of dollars by granting loans without verifying information in the borrowers’ applications.
The bank, in Arlington Heights, hired Silber in May 2006 as senior vice president of commercial lending, according to the complaint in Cook County Court. As “an experienced loan officer with supervisory experience and expertise and knowledge in the real estate and construction industries,” Silber’s job included “analyzing and verifying loan applicants” to protect the bank’s assets, according to the complaint.
But from the time he was hired until he was fired in December 2008, Silber failed to verify information submitted by at least 11 construction and real estate borrowers, the bank claims. In some cases, the bank says, Silber misrepresented a construction company’s budget.
Village Bank & Trust claims Silber cost it $37 million in loans that have defaulted or are at risk of foreclosure.
The bank demands more than $50 million for multiple breaches of fiduciary duty. It is represented by Jeralyn Baran with Chuhak & Tecson.